Range Extension (RE)

Search Dictionary

Definition of 'Range Extension (RE)'

Range Extension (RE) is a Market Profile concept.

After the market opens we wait until two brackets have completed in order to establish the Initial Balance (IB). The IB demarcates the High and Low for the first two brackets of trading which is usually the first one hour of trading but does not have to be.

If the market moves above or below this established High or Low we have Range Extension. Some traders do not consider Range Extension to be significant (and tradable) until the market has traded a number of ticks beyond the IB range. In the E-mini S&P500 this value is often considered to be 3 ticks.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.